Is Supply Chain a competitive Advantage?

A survey was made on 1998, respondents ranked supply chain management as essential to success. Supply Chain was often thought as the management of supplies or suppliers. Critics thought as supply chain management is the old wine of “supplier management” poured into a colourful bottle.

In era of IoT and Block Chain, supplychain management is a collaborative, digitally supportive, cross-enterprise operating strategy that aligns the flow of incoming materials,manufacturing, and downstream distribution in a manner responsive to changes in customer demand without creating surplus inventory.Moreover, supplychain management is a competitive approach that integrates a network of operating entities into a delivery system that enhances customer value and satisfaction and that protects the competitiveness of the entire supply chain.

Last two decades, the approach adopted for managing the supply chain as a loose collection of independent segments, also referred as traditional approach. Each segment concerned with achieving its own objectives regardless of the effect on other segments, squanders the promised benefits of cross functional supply chain management.

A leading reason for the traditional approach’s failure is its reliance on cost effectiveness systems that emphasize the minimization of controllable costs. Having recognized this, some companies have successfully mitigated the effects by increasing the velocity and visibility.

To be successful in competitive environment, companies has to think beyond internal economics of activity costs. It has been proven fact that internal economics fails to address the issue of how supply chains can improve customer value and satisfaction. To become successful in the intense competition with highly intolerable customers, companies has to learn importance of flow and ROA. When operations adapt agility, tends to demand driven with cross enterprise collaboration enabled, then supply chain become value added and competitive advantage.

Presented By,

Azhar Qadri


The opinions expressed in this article are those of the author.

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